Mr. Sheldon Bennett reports

DMG BLOCKCHAIN SOLUTIONS ANNOUNCES LARGE BITCOIN MINING SERVER PURCHASE AND NOVEMBER MINING RESULTS

DMG Blockchain Solutions Inc. has signed an agreement with Bitmain Technologies to purchase 4,550 T21 190 TH/s (terahashes per second) bitcoin miners for $12,103,000 (U.S.) ($14 (U.S.) per TH/s). Financing of the purchase may be through existing cash/liquidated bitcoin, debt or a combination of both.

DMG Purchases Bitmain T21 Bitcoin Miners for up to 1 EH/s of New Hashrate

DMG expects shipment of its T21 miners in the March quarter of 2024; terms of the purchase are 10% downpayment (already paid) with the balance due in the month prior to shipment. As the T21 natively supports a high-energy (overclocked) mode to 233 TH/s (with a modest decrease in efficiency from 19 J/TH to 22 J/TH), which DMG expects to utilize, the Company may be able to realize from this purchase up to 1.06 EH/s (subject to equipment receipt, installation and full operation), which is comparable with DMG's current hashrate. Delivery to DMG's Christina Lake data center facility is subject to change given macro factors including but not limited to shipping logistics and customs processing.

DMG is planning to utilize its previously purchased mining containers, which are in the process of being installed at its Christina Lake facility in advance of taking delivery of the T21 miners. This new fleet, in combination with expected rationalization of its existing fleet, will help DMG improve its overall fleet efficiency anticipated to be below 25 J/TH post-halvening, which is expected in April 2024.

November 2023 Preliminary Mining Results

In November 2023, DMG mined 64.7 bitcoin with 0.97 EH/s realized hashrate. DMG's bitcoin balance as of November 30, 2023 was 429 bitcoin. DMG exited November with 1.07 EH/s of realized hashrate. The Company is working to improve the operation of its fleet so that its realized hashrate is closer to its fleet nameplate hashrate of 1.2 EH/s in the coming months.

About DMG Blockchain Solutions Inc.

DMG is an environmentally friendly vertically integrated blockchain and cryptocurrency company that manages, operates, and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG's sustainable businesses are segmented into two business lines under the Core and Core+ strategies and unified through DMG's vertical integration.

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